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Did the Elimination of Mandatory Retirement Affect Faculty Retirement?

  • Orley Ashenfelter
  • David Card

A special exemption from the 1986 Age Discrimination Act allowed colleges and universities to enforce mandatory retirement of faculty at age 70 until 1994. We construct a survey that permits us to compare faculty turnover rates before and after the law changed at a large sample of institutions with defined contribution pension plans. After the elimination of compulsory retirement the retirement rates of 70- and 71-year-olds fell by two-thirds and were comparable to rates of 69-year-olds. These findings indicate that U.S. colleges and universities will experience a rise in the number of older faculty over the coming years. (JEL J26, I21)

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/00028280260344542
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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 92 (2002)
Issue (Month): 4 (September)
Pages: 957-980

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Handle: RePEc:aea:aecrev:v:92:y:2002:i:4:p:957-980
Note: DOI: 10.1257/00028280260344542
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  1. Ashenfelter, Orley & Card, David, 2001. "Did the Elimination of Mandatory Retirement Affect Faculty Retirement Flows?," IZA Discussion Papers 402, Institute for the Study of Labor (IZA).
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